Hem Singh Bharana vs Mehar Bhoomi Bhawan Private Limited

IN THE MATTER OF: Hem Singh Bharana ....Appellant

Vs.

Pawan Doot Estate Pvt. Ltd. & Ors. ....Respondents

Present: For Appellant: Mr. Abhijeet Sinha, Mr. Apoorv Agarwal, Mr. Manav Goyal. For Respondents: Mr. Krishnendu Datta, Sr. Advocate, Mr. I.P.S. Oberoi, Ms. Neha Aggarwal, Mr. R. K. Srivastava, Advocates for R-3 & 4. Mr. Sanjay Bhatt, Ms. Ruchi Goyal, Ms. Aishwarya, Advocates for RP/R-1. Mr. Aditya Vashisth, Advocate for R-7. Ms. Anju Jain, Mr. Hitesh Sachar, Advocates for Canara Bank/R-8.

ORDER

24.05.2023: Heard Learned Counsel for the parties. This appeal has been

filed against the order dated 18.01.2023 by which order Adjudicating Authority

has approved the Resolution Plan submitted by consortium of Pradeep Kumar

Lather and M/s Mehar Footwear Pvt. Ltd. The appellant, the promoter of the

Corporate Debtor has come up in this appeal challenging the order dated

18.01.2023 approving the plan.

2. Learned Counsel for the Appellant challenging the order submitted that

the Respondent No.3 was not eligible to submit a Resolution Plan. It is

submitted that for the eligibility Minimum Tangible Net worth of INR 5 crore

was eligibility criteria at a group level which was not fulfilled. It is submitted

Cont'd../ -2-

that Resolution Applicant being not eligible approval of Resolution Plan is

vitiated and deserves to be set aside.

3. We have issued notice on 27.01.2023, Resolution Professional was

permitted to file a status report along with all documents submitted by the

Successful Resolution Applicant within a week.

4. In compliance of the order passed by this Tribunal dated 27.01.2023,

Resolution Professional has filed an Affidavit dated 06.02.2023 where Net

worth Certificate dated 08.08.2019 has been brought on the record. Resolution

Professional in the Affidavit pleaded that the Resolution Applicant fulfilled the

eligibility criteria as stipulated in Form-G. Learned Counsel for the Successful

Resolution Applicant further submitted that Resolution Plan has already been

implemented and payouts have been made.

5. We have considered the submissions of Learned Counsel for the

Appellant and perused the record.

6. The ground for ineligibility of Pradeep Kumar Lather as contended by the

Appellant is that he did not fulfill the Minimum Criteria of INR 5 Crores as set

out by the CoC in Form-G needs consideration.

7. Resolution Professional has filed the Net Worth Certificate as on

08.08.2019 which indicate that Net worth is Rs. 6814 Lakhs. The Resolution

Professional took into consideration the Net worth Certificate and finding the

Resolution Applicant eligible examined the resolution plan and placed it before

the CoC.

Company Appeal (AT) (Ins.) No. 86 of 2023 -3-

8. The Affidavit under Section 29 A was also filed along with plan stating

that Resolution Applicant is not ineligible under Section 29 A.

9. We are of the view that Resolution Applicant was fully eligible and there

was no infirmity in the approval of the Resolution Plan. No other infirmity in

the Impugned order has been pointed out.

10. We, thus, are of the view that there is no ground to interfere in the

Impugned Order. Appeal is dismissed.

[Justice Ashok Bhushan] Chairperson

[Mr. Barun Mitra] Member (Technical)

sa/nn

Company Appeal (AT) (Ins.) No. 86 of 2023